Moving into your dream home has to be up there with one of the most exciting things in life, which means doing all the right checks on your potential new asset could not be more important.
Joshua Kelland, Head of AAMI, says it is worth doing your due diligence on what may be the biggest financial decision you’ll ever make, and to make sure the property can be adequately insured to manage financial loss should the unexpected happen.
“Your home is one of the most important assets you’ll ever own,” Mr Kelland says.
“Whilst price may play a large role, it’s worth choosing an insurer you can trust to provide the right level of coverage should something unfortunate happen unexpectedly.”
So, while it’s fun planning where the couch will go and what renovations you might do, here’s your checklist of 6 things to consider before putting in an offer on a property.
While this should be done before even starting to look at properties, it’s important to double check your pre-approval amount, and that your deposit is secured before putting in an offer.
As well as the purchase of the property, make sure you have checked out any other financial obligations included with signing the dotted line.
This may include strata or body corporate fees, property taxes, shared utilities, maintenance fees, and installation costs.
Remember to factor in home and contents insurance also, to help cover the loss or damage to your home and contents caused by insurable events like theft, fire or storms. Check the relevant product disclosure statement for details as to what is and isn’t covered.
While there are “a number of factors” that influence the amount you pay for insurance, Kelland says.
“The factors we use and how they combine to affect your premium will differ from person to person.”
“Examples of some of the things we consider are type of building construction materials, the estimated rebuild cost, quality of fittings and the location of your new home,” he adds.
You should also consider the type of sale and whether it will be private or auction, the agreed settlement timeline, and when the vendor will be accepting offers for the property.
While you might fall in love with the idea of a house for its French doors, stain glass windows or double sinks, cover your bases to get an idea of what life would really be like before you put an offer on the dwelling.
Have a chat with the neighbours and go for a stroll around the area to gage whether you could live there.
Having a list of key questions is a great way to figure out whether an area is for you.
These could include:
Before putting an offer on a property, a professional building inspection is essential to check the condition of the house to see if repairs are needed, and for signs of any structural problems.
Look out for any home maintenance issues to avoid damage or repairs to your home down the track. This could be any issues with the roof, the gutters and downpipes, water damage, wall cracks and the foundation.
It’s not just coffee shops and public transport to check out in the location of your potential new home.
It is important to investigate whether the location is prone to natural hazards such as floods, bushfires and storms.
“You can consider checking with the local council for things like flood risk that may affect the safety and security of a home down the track”, says Mr Kelland.
The location of your new home can be one factor that affects your premium also. If you’re moving to an area less prone to bushfires, floods or storms, there is a chance your premiums – could be lower than they’d be in a more high-risk area.
It’s important to know, that some lenders may require you to have home insurance as a condition of your mortgage approval.
Home and contents insurance can cover a range of insured events like fire, theft, storms and lightning. It can also offer homeowners repair or replacement of damaged property (usually based on a sum insured), as well as the contents inside that property up to the agreed cover limit.
“It’s important to understand key details such as the terms of the sale contract, the terms with your financier, settlement dates and any relevant laws or regulations to ensure you have the cover you need,” Mr Kelland says.
Find out the date you become responsible, and look to become covered from this period, with the right level of coverage for your personal circumstances.
With AAMI Home and Contents Insurance, you can get a quick online quote in around five minutes just by providing the address and some property details.
Once you have completed all the checks, research and requirements and you’re ready to make an offer, congratulations!
Have a conveyancer or solicitor look over the contract to give you advice and information on the contract of sale.
See if you can put in an offer early, noting any conditions associated with your final price. Hopefully the home is yours, and you can begin settling into life in your dream home, having done your research.
Written by AAMI and published on realestate.com.au
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